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At the end of the current year, a company overstated prepaid insurance by $62,000 and understated supplies expense by $106,000. Its effective tax rate is

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At the end of the current year, a company overstated prepaid insurance by $62,000 and understated supplies expense by $106,000. Its effective tax rate is 35%. As a result of this error, net income is: Multiple Choice Understated by $28,600. Understated by $109,200. Overstated by $109,200 Overstated by $28,600

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